NBA approves Robert Pera's purchase of Memphis Grizzlies

Grizzlies fans are doused with silly sting by mascot Grizz during a preseason game against the Orlando Magic at FedExForum Wednesday night. The sale of the franchise to Robert Pera passed another obstacle on Wednesday as the league's finance committee approved the purchase.

NEW YORK — The NBA's Thursday approval of Robert Pera's bid to own the Grizzlies has cleared the way for the 34-year-old Silicon Valley wireless technology entrepreneur to become just the second owner of Memphis's major league sports franchise, days before it begins its 12th season in the Bluff City.

The league's Board of Governors voted unanimously to approve transfer of ownership to Pera's group during its meeting at the St. Regis Hotel in Midtown Manhattan.

NBA Commissioner David Stern lauded Pera's group, emphasizing the local partners he has recruited to it. "The future of the NBA in Memphis looks very bright today," Stern said in a press conference that was dominated by news that he will retire from his post as the league's commissioner in early 2014.

Pera must still close the $350 million deal with current owner Michael Heisley. The Grizzlies released a short statement following the NBA's approval, saying that closure of the deal "is expected to take place shortly."

NBA approval was viewed as the most significant hurdle for Pera's bid.

We think Memphis is a great community and has the ability and the capacity to be an extraordinary leader in the NBA."

Pera is not expected to speak publicly about the purchase until after the deal closes. Since agreeing to purchase the team on June 11, Pera has made no public comments about the Grizzlies. His representatives have said he is abiding by NBA requests not to make public comments during the league's evaluation of the bid.

Stern said he expects to be in Memphis on Nov. 5, the date of the team's home opener, suggesting that the team may also be introducing Pera then.

San Antonio Spurs controlling owner Peter Holt said he met Pera for the first time Wednesday when the league's finance committee unanimously approved his purchase. He asked him why he wanted to get into the basketball business and said Pera responded by saying it has always been a love of his.

"The reason I brought the question up was, he's going into a business that has its ups and downs, obviously, like all businesses," Holt said following the news conference. "And I said if there isn't a real love in your heart, not just your head, for it, then it's just not going to be a lot of fun. Because it's a tough business, it's a tough business. And, he has a real passion for it. He has a real passion for basketball."

Pera has recruited a wide range of investors to join his bid, including local businessmen such as AutoZone founder J.R. "Pitt" Hyde, investor Staley Cates, financier Duncan Williams, investor Edward Dobbs and cell phone tower developer Billy Orgel. Performer Justin Timberlake, who has Shelby County roots; Memphis native Ashley Manning and her husband Peyton Manning, the NFL and former University of Tennessee quarterback; Tiger basketball legends Penny Hardaway and Elliot Perry; and former Congressman Harold Ford Jr. are also part of Pera's ownership group.

Pera has agreed to a three-pronged proposal of safeguards that essentially binds the team in Memphis for another 15 years.

"I'm looking forward to those Memphians who are going to connect this team in an even stronger way to this community," Stern said. "We think Memphis is a great community and has the ability and the capacity to be an extraordinary leader in the NBA."

Steve Kaplan, a Los Angeles-based investor, has also joined Pera's group.

Sources told The Commercial Appeal this week that while Pera will remain the largest shareholder and thus be the controlling owner, his ownership percentage is less than 50 percent.

Upon Pera's expected closing of the sale with Heisley, it will draw to a conclusion the 75-year-old Chicagoan's colorful tenure as NBA owner in Memphis. He purchased the team for $160 million shortly before its 2001 move from Vancouver and engineered its landing in Memphis, giving the city a franchise in one of the four major professional sports leagues for the first time. That led to the 2004 opening of a $250 million arena, FedExForum, off Beale Street, creating a new venue for both the Grizzlies and the University of Memphis.

Pera is the founder of San Jose, Calif.-based Ubiquiti Networks, which develops wireless Internet technology. His company has been scrutinized this summer after concerns about its products being counterfeited and its stock fell from a high of $35 per share on May 1 to around $12 per share this week. Pera was an unknown to many, even in NBA circles, when it became public earlier this year that he agreed to buy the team.

Soon, the lifelong NBA fan will join the elite club of NBA owners.

"Robert Pera is one smart, hard-working businessman and basketball fan who is so delighted to have the opportunity to purchase the Memphis Grizzlies," Stern said. "His enthusiasm is infectious."